2.7Value Driver: Sustainability
Sustainable development is an important value driver for SBM Offshore’s business and operations.
SBM Offshore believes in doing business that benefits clients, employees, shareholders, partners and society in general. SBM Offshore considers this to be fundamental.
The Company aims to be the industry frontrunner on Sustainability as reflected in the Company’s vision. To achieve this ambition, SBM Offshore continuously strives to promote sustainability awareness, develop talent within the company and incorporate ethics and integrity in all its activities.
Embedding sustainability as a way of working in SBM Offshore is founded on continuous engagement with its employees. In addition, reporting on successful sustainable initiatives, charity projects and donations will improve awareness and further encourage engagement.
The Company’s strategy for Sustainability is founded on developing material aspects with focus on its License to Operate, covering,, compliance and human capital and its License to Grow for which four specific themes have been defined.
In this chapter these Licenses and themes will be explained.
License to Operate
License to Operate refers to the standards required to operate in accordance with the law and regulations on ethics, safety, health, quality, labor standards, environmental standards, governance, and client specifications. SBM Offshore has a long history on managing and reporting its performance on a wide range of the license to operate aspects.
- ; Protect Health, Safety and Security to ensure that these aspects will not be compromised in order to achieve any other business objectives
- Environment; SBM Offshore is committed to protecting people, preventing pollution and safeguarding the environment
- Human Capital; Ownership and accountability by all employees to actively deliver results drive collective success and future as a company
- Compliance; SBM Offshore is committed to conducting its business activities in an honest, ethical, respectful and professional manner
License to Grow
Carrying the Company beyond compliance, SBM Offshore believes that sustainability creates its ‘License to Grow’ and will provide the Company with a competitive edge for future business. The Company’s ambition is to fully integrate sustainability into its business proposition and to create a balanced economic, social and environmental value model in all of the countries in which it operates.
These themes are:
- Manage the environmental impact of all activities by optimizing the footprint of SBM Offshore’s operations and embed sustainability in the full product lifecycle
- Shape sustainable offshore solutions with the clients and engage with them to enhance field recovery through technology innovations
- Create a sustainable, integrated supply chain aimed at the development of sustainable products, services and business models
- Foster local development and enhance the positive socio-economic impact in the countries in which the Company operates through employee development and local community programs
SBM Offshore’s Sustainability Framework, as presented below, shows both license to operate and license to grow aspects of SBM Offshore’s sustainable development. The license to grow themes and objectives reflect the specific focus of SBM Offshore’s Sustainability strategy for value creation.
Sustainability reporting and benchmarks
SBM Offshore commits to reporting its sustainability performance against Global Reporting Initiative (GRI) G4 core standard in a transparent manner and reports on indicators for its sustainability policies that reflect all the material topics, which can be found in the section 2.2.2 Materiality.
The successful introduction of the Global Reporting Initiative (GRI) G4 reporting standard in 2014 has improved the Company’s reporting and demonstrates that its financial and non-financial performance creates shared value.
SBM Offshore’s sustainability performance continues to improve and it has been included in the Dow Jones Sustainability Index World (DJSI) index for the sixth consecutive year.
Other external institutes like the Carbon Disclosure Project (CDP), De Vereniging van Beleggers voor Duurzame Ontwikkeling (VBDO) and the Transparatie Benchmark of the Ministry of Economic Affairs of the Netherlands, have also rated the Company providing it with useful feedback on its performance.
See 7.2 Performance Indicators for detailed results on sustainability external rating performance.
Sustainability Creating Value and Targets
This chapter lists the targets set for material topics that are directly related to Sustainability as a value driver for both License to Operate and License to Grow. Value creation is optimized through combining targets when complimentary for that function.
Sustainability is embedded in the organization and strategic objectives described and set as part of the value driver. Execution of the strategy and performance is reported by the relevant Group Functions in sections 2.7.1 to 2.7.6.